Passive Income Topic: Dividend Investing

Hey Everyone!  It has been awhile since I have made a post, as I was in Chicago for 4 days ~ I am definitely not complaining though.  I would like to talk about a source of passive income in Dividend Investing.  I want to state that I do not recommend any of this to those that are weary or do not know much about investing, as it takes time to learn and study such topics, I simply am explaining what I have done and am doing.  Thank you.

Most people are afraid of the risk involved in the stock market - there can be risk, but only risk to the uneducated non-financial literate person.  I have began studying ways to receive other passive income routes and have stumbled on Dividend paying stocks.

A dividend, for those that do not know, are earnings shared by a corporation given back to the shareholders of stock in that corporation.  Some pay one annual dividend, others (Majority) pay quarterly dividends so that you receive 4 payments every year.  Example: One stock I own, I have 30 shares and their dividend yield is 60 cents per share. That is $18 and I will receive that every quarter or 4 times per year.

I am going to be purchasing dividend paying stocks with all of my free online money from Fusion Cash, Cash Crate, Inbox Dollars and other sites that I receive passive income from.  Therefore, I am investing with money I am willing to lose because it was free to begin with.  Of course I do my due diligence, I study probably from 50-100 different companies and narrow down my choices before purchasing their stock, so I ultimately want to win.

With dividend paying stocks they are taxed in a lower tax bracket then your normal income, because it is portfolio income.  In fact, this year, if you fall into the 2 lowest tax brackets and the dividends are qualified, you are not taxed at all!  Everything else would be 15% taxed, the tax codes are changing for 2011 however.

To conclude: Dividend Paying stocks are a great way to receive checks every quarter or every year and you really don't have to do much besides doing your homework and choosing the right stock to begin.  You can reinvest those dividends to purchase more of the stock to receive even more dividends in the future or you can use them on whatever you like.  There are tax advantages to them as well.  I wish you the best of luck on your journey, for free money sites that I use to invest go here: Passive Income Websites.   Thank you.

Again, I do not recommend any of this as I am not certified or a financial advisor.  I simply am explaining what I am doing and how I am doing it.  If anyone has any questions feel free to comment or message me.  Thanks.

-Lanny B.